US to cut 'de minimis' tariff on China shipments to 54% from 120%
FILE PHOTO: Parcels waiting to be processed are seen through a glass as a delivery worker's reflection appears on it in a post office, as Hong Kong Post stops certain U.S.-bound shipments since April 27 due to new U.S. tariff rules, in Hong Kong, China, May 2, 2025. REUTERS/Tyrone Siu/File Photo
US to cut 'de minimis' tariff on China shipments to 54% from 120%
HONG KONG - The United States would cut the low value "de minimis" tariff on China shipments to 54% from 120%, with a flat fee of $100 to remain, starting from May 14, modifying an earlier order imposed by Washington, a White House executive order said on Monday.
The move comes several hours after Beijing and Washington announced a truce in their trade war, with both sides agreeing to unwind most of the tariffs imposed on each other's goods since early April.
The de minimus exemption, for items valued at up to $800 and sent from China via postal services, were previously able to enter the United States duty free and with minimal inspections.
In February, President Donald Trump ended the de minimis exemption by imposing a tax of 120% of the package's value or a planned flat fee of $200 - set to come into effect by June - after it was heavily used by companies such as Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods.
The number of shipments entering the U.S. through the tax-free channel exploded in recent years with more than 90% of all packages coming via de minimis. Of those, about 60% came from China, led by direct-to-consumer retailers such as Temu and Shein.
Temu, Shein and Amazon did not immediately respond to requests for comment.
In Monday's order, the White House said it was amending 120% to 54% with the changes to take effect by 12:01 a.m. (0401 GMT)on May 14, 2025.
The plan for a $200 flat fee duty rate would also be shelved, it said, keeping it at $100.
The U.S. de minimis rule, which dates back to 1938, has been the target of growing criticism from both Democratic and Republican lawmakers.
Some have derided it as a loophole that allows cheap Chinese products to flood into the United States and undercut American industries, while also serving as cover for smuggling contraband such as illegal drugs and their precursor chemicals. REUTERS
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